Shri Venkatesh Refineries SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2021 – 01 Oct 2021
- Listing date
- 11 Oct 2021
- Face value
- ₹10 per share
- Issue price
- ₹40 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹11.71 Cr
- Market cap at offer price
- ₹44.24 Cr
- Promoter holding
- 100.00% → 73.53% pre-issue → post-issue
- ISIN
- INE0HLJ01013
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- GAT NO.16, Umarde, Erandol, Jalgaon, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,47,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹40
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 24,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 27,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹44.24 Cr |
About Shri Venkatesh Refineries SME
Shri Venkatesh Refineries Limited (SVRL), incorporated on February 28, 2003 and converted to public limited company on December 30, 2020, is primarily engaged in the refining and preservation of edible oils, mainly soybean oil and cottonseed oil. The company's business process involves purchasing raw oil, then refining, packaging, and selling the edible oil. Currently, the company operates with a refining capacity of almost 36,000 tons. Apart from refining, SVRL is also engaged in the trading of edible oils, including soybean oil, cottonseed oil, and palm oil. The company has established a distribution network of dealers and distributors who sell and market its products to customers. For the year ended March 31, 2021, the company reported total revenue from operations of ₹33,695.48 lakhs and profit after tax of ₹350.80 lakhs.
Company Analysis
from RHPShri Venkatesh Refineries Limited refines and trades edible oils, primarily soybean oil and cottonseed oil, with a refining capacity of approximately 36,000 tons.
Shri Venkatesh Refineries Limited (SVRL), incorporated on February 28, 2003 and converted to public limited company on December 30, 2020, is primarily engaged in the refining and preservation of edible oils, mainly soybean oil and cottonseed oil. The company's business process involves purchasing raw oil, then refining, packaging, and selling the edible oil. Currently, the company operates with a refining capacity of almost 36,000 tons. Apart from refining, SVRL is also engaged in the trading of edible oils, including soybean oil, cottonseed oil, and palm oil. The company has established a distribution network of dealers and distributors who sell and market its products to customers. For the year ended March 31, 2021, the company reported total revenue from operations of ₹33,695.48 lakhs and profit after tax of ₹350.80 lakhs.
Objects of the Issue
- Working Capital Requirement ₹878.40 lakhs p.16
- General Corporate Purpose ₹146.43 lakhs p.16
- Issue Expenses ₹146.37 lakhs p.16
- To meet Working Capital requirements ₹878.40 Lacs p.67
- General Corporate Purpose ₹146.43 Lacs p.67
- To meet issue expenses ₹146.37 Lacs p.67
Issue Structure
- Total Issue
- ₹1171.20 lakhs
- Fresh Issue
- 29,28,000 Equity Shares of face value of ₹10 each at issue price of ₹40 per share aggregating to ₹1171.20 lakhs
- Price Band
- ₹40 per Equity Share (fixed price)
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through two primary channels: (1) Refining of crude edible oils (soybean oil, cottonseed oil) into refined products for sale, and (2) Trading of refined and crude edible oils. Revenue generation is based on purchase of raw materials at market prices, refining and packaging, and selling to dealers and distributors. The company maintains working capital primarily in inventories and trade receivables.
Business Segments
SWOT Analysis
- • Established refining capacity and operational track record(p.16)
- • Presence in high-demand market with supply gap(p.16)
- • Established brand and customer relationships(p.23)
- • Established distribution network across Maharashtra(p.88)
- • Quality control measures embedded throughout production process(p.88)
- • Strong brand recognition in regional market(p.88)
- • Large-scale and versatile manufacturing infrastructure(p.89)
- • Significant storage capacity for crude and refined oils(p.89)
- • Experienced management team with deep industry knowledge(p.89)
- • Strategic location enabling direct raw material procurement(p.85)
- • Experienced promoter team with combined 125 years of industry experience(p.126)
- • Established brand name and growing market presence(p.162)
- • Modern manufacturing facility with strong infrastructure(p.162)
- • Expanded refining capacity and operational scale(p.162)
- • Strategic geographic location for raw material procurement(p.162)
- • Investment in sustainable energy infrastructure(p.162)
- • Positive financial growth and profitability(p.162)
- • Heavy dependence on few suppliers for raw materials(p.21)
- • No long-term supply agreements with suppliers(p.21)
- • No long-term contracts with dealers and distributors(p.22)
- • Significant indebtedness and interest expense burden(p.27)
- • History of negative cash flows from operations(p.28)
- • Multiple statutory non-compliances in past(p.22)
- • Promoter-related party transactions and conflict of interest(p.25)
- • Contingent liabilities not provided for in financial statements(p.26)
- • Concentrated customer base and dependence on regional distribution(p.89)
- • Capacity utilization below installed capacity(p.92)
- • Limited scale relative to major competitors(p.71)
- • Heavy dependence on related party loans from directors(p.145)
- • High leverage with total debt significantly exceeding equity(p.157)
- • Significant dependence on few major trade payables(p.173)
- • Outstanding tax liability and income tax disputes(p.172)
- • Conflict of interest with related party entities engaged in similar business(p.125)
- • Loss-making group company with no revenue generation(p.179)
- • No formal dividend policy or dividend history(p.129)
- • Expand brand presence to other regions(p.23)
- • Capitalize on import dependency in edible oil market(p.16)
- • Use IPO proceeds for working capital and business expansion(p.16)
- • Expansion of marketing and distribution network to increase sales(p.89)
- • Increase in manufacturing capacity to meet growing demand(p.89)
- • Expand geographical presence beyond current markets(p.89)
- • Growing demand for edible oils in India(p.82)
- • Operational efficiency improvements through technology and process optimization(p.90)
- • Expansion of distribution network through additional distributors(p.162)
- • Growing consumption of quality branded edible oils(p.162)
- • Expansion beyond Maharashtra to pan-India market(p.162)
- • Capital infusion through IPO for growth initiatives(p.129)
- • Raw material price volatility and supply disruptions(p.21)
- • Dependence on agri-commodities affected by weather and natural disasters(p.32)
- • Intense competition from organized and unorganized players(p.26)
- • Regulatory changes and licensing requirements(p.24)
- • Economic slowdown and inflation in India(p.32)
- • Exchange rate fluctuations on imports(p.30)
- • Power supply shortages affecting operations(p.22)
- • Market volatility for first-time public listing(p.19)
- • Highly competitive edible oil industry(p.93)
- • Price sensitivity and commodity-driven pricing(p.93)
- • Dependence on volatile global and domestic edible oil prices(p.82)
- • Heavy reliance on imported edible oils subject to tariff changes(p.83)
- • Regulatory requirements and food safety compliance obligations(p.96)
- • Global economic uncertainty and pandemic impact on demand(p.78)
- • Raw material supply disruption and price fluctuations(p.163)
- • Increased competition in edible oil industry(p.163)
- • Dependence on agri-commodity fluctuations(p.169)
- • Regulatory changes and compliance requirements(p.163)
- • General economic and business cycle uncertainties(p.163)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dinesh Ganapati Kabre | Promoter | 25.41% | 18.68% |
| Anil Ganpati Kabre | Promoter | 24.48% | 18.00% |
| Shantanu Ramesh Kabre | Promoter | 7.12% | 5.23% |
| Prasad Dinesh Kabre | Promoter | 21.29% | 15.66% |
| Dinesh Ganapati Kabre | Promoter | 25.41% | 18.68% |
| Anil Ganpati Kabre | Promoter | 24.48% | 18.00% |
| Shantanu Ramesh Kabre | Promoter | 7.12% | 5.23% |
| Prasad Dinesh Kabre | Promoter | 21.29% | 15.66% |
| Sanjay Ramesh Kabre | Promoter Group | 3.78% | 2.78% |
| Usha Dinesh Kabre | Promoter Group | 4.64% | 3.41% |
| Piyusha P Kabre | Promoter Group | 4.10% | 3.01% |
| Monam A Kabre | Promoter Group | 4.10% | 3.01% |
| Sweta G Kabre | Promoter Group | 1.64% | 1.21% |
| Anita Shantanu Kabre | Promoter Group | 1.04% | 0.76% |
| Asha Sanjay Kabre | Promoter Group | 1.01% | 0.74% |
| Vaiju Anil Kabre | Promoter Group | 0.60% | 0.44% |
| Gautam Anil Kabre | Promoter Group | 0.39% | 0.29% |
| Anand Anil Kabre | Promoter Group | 0.39% | 0.29% |
| Shrikrupa Ginners Private Limited | Promoter Group | negligible | negligible |
| Mr. Dinesh Ganapati Kabre | Promoter | 25.41% | — |
| Mr. Anil Ganpati Kabre | Promoter | 24.48% | — |
| Mr. Shantanu Ramesh Kabre | Promoter | 21.29% | — |
| Mr. Prasad Dinesh Kabre | Promoter | 7.12% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.